REIV calls for extended timelines and financial support for new rental standards

The Real Estate Institute of Victoria (REIV) has cautioned that the proposed implementation of new minimum energy efficiency standards for rental properties could further destabilize Victoria’s rental market without proper support and extended timelines.

In a submission to the Victorian Government’s consultation process, the REIV, representing 7,000 members, outlined five key recommendations:

1. Financial assistance for rental providers, such as land tax rebates, to offset the costs of upgrades.
2. Extended implementation timeframes, suggesting a 36-month lead time for full compliance.
3. Compliance training for stakeholders before new standards are implemented.
4. Clearer details around exemptions to avoid ambiguity and potential loopholes.
5. Sector-wide education in collaboration with Consumer Affairs Victoria to ensure all parties understand their obligations.

Jacob Caine, REIV President, stated, “In principle, this is a positive move that will provide renters with more comfortable homes that are cheaper to run. However, these requirements must be implemented without further exacerbating the immense pressure our rental ecosystem is already under.”

Caine emphasized that private investors remain the backbone of the rental market and warned that additional costs could force more owners to sell their properties, further reducing rental housing availability.

“We are concerned that rushing to implement these new standards without a strategic plan and clear, unambiguous guidelines might, in practice, lead to delays or outcomes contrary to the intent of the legislation,” Caine added.

The REIV stressed that the new standards must be viewed in the context of overall property maintenance costs and the current volatile market conditions.

While supporting the government’s intent to improve energy efficiency in rental properties, the REIV urged for a balanced approach that considers the financial capacity of rental providers and the potential impact on the broader rental ecosystem.

The organization called for the government to extend implementation timelines, especially for complex works where a property is already broadly compliant, to ensure a smooth transition and avoid unintended negative consequences in the rental market.